Fewer jobs than expected?

It's now uncertain how many jobs an automotive company will bring through its new plant in Shelby.

KSM Castings, a German-based company, announced in February plans to bring 189 full-time jobs to the area within the next six years.

Those plans may be changing, according to Shelby city leaders.

Leaders for KSM , which supplies cast light metal products for luxury-brand vehicles, have asked the city to not hold the company responsible if it can't create the 120 permanent jobs it promised within its first two years of operation.

“They certainly will create 80 jobs, but there’s uncertainty if they can create the additional 40 jobs,” Shelby City Manager Rick Howell said.

Howell said KSM officials told him "future market uncertainty" sparked questions about how many jobs the company will create.

Looking out for the city

The city’s incentive package with KSM also includes industrial grants worth $1.35 million during a 20-year period and a one-time cash grant of $250,000, The Star previously reported.

Those incentives are based on new economic investment in land and building improvements, not job creation, Howell said this week.

“The contracts are already signed and there are dates with them,” City Councilman Joel Shores said during this week's board meeting. “We’re doing them a favor.”

Anthony said the change in expected jobs is a cautious move by KSM .

“We’re walking a fine line between being accommodating and looking out for the city’s interest as well,” Anthony said. “We want them to know we want to work with them. This is their first time in the state.”

It’s now up to KSM officials to agree on the terms of the incentive agreement, according to Shelby leaders.

The company has already purchased land on Plato Lee Road in Shelby for its facility. Howell said engineers are currently working on design plans and KSM could break ground on the land in the near future.

KSM’s Shelby location will be its first on American soil. The company plans to be fully operational in Shelby by 2014.